Vietinbank and steelmaker Hoa Phat Group (HPG) have inked a credit agreement to finance the Hoa Phat Dung Quat iron and steel production complex, the company has announced.

Under the agreement, Vietinbank has committed to provide capital funds of up to VND10 trillion (US$438.6 million) for seven years with preferential interest rates.

The company’s finance director, Pham Thi Kim Oanh, said Vietinbank and other major banks were ready to invest in this strategic steel project thanks to its good credibility and strong financial capacity.

Located in the Eastern Industrial Zone of Dung Quat Economic Zone in Quang Ngai Province, the VND60 trillion complex is designed to have an annual capacity of four million tonnes of steel products. In the first phase, it will produce one million tonnes of construction steel and one million tonnes of high-quality rolled steel. The second phase is designed to produce two million tonnes of hot-rolled steel flat bar for machinery manufacturing.

The complex will be equipped with modern and environmentally-friendly technologies and is expected to be completed in four years. — VNS